Retailers to minimise impact of VAT increase

Following the VAT in the United Kingdom yesterday, which upped the VAT rate from 17.5 per cent to 20 per cent, game retailers have increased their prices.

Some retailers, however, such as Game and GameStation, have indicated that they plan to minimise increases as much as possible and try to return prices to normal.

The VAT increase means that games which previously cost £39.99 have been increased to £40.99 RRP - a change reflected both in online and high street retailers. MCV has already confirmed price hikes for leading retailers Game, Amazon and Argo.

'We are working hard with our suppliers to minimise the impact of the VAT rise on product prices but from 4 January 2011, customers will see some increase in our in-store and online prices,' a Game representative said.

'However every week, customers will also see that we have a wide range of special deals and promotions that offer a greater discount than the VAT rise and offer incredible value for our customers. These will continue in 2011 and we are confident that customers will see that we provide value and expertise that they can not find anywhere else.'